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Citadele launches € 25 million Second Unsecured Subordinated Bonds Programme

  • Latvia

    11-12-2017

    The Eversheds Sutherland Bitāns team led by partner Edijs Poga advised AS Citadele banka, a leading Latvian commercial bank, on its €25 million Second Unsecured Subordinated Bonds Programme, as well as on a highly successful public offering of a first series of subordinated bonds issued under the programme with total nominal value of €20 million (LV0000880011) and following listing on the Baltic Bond list of Nasdaq Riga Stock Exchange.

    The 10-year bonds, with a coupon rate of 5.5% payable semi-annually, were issued to strengthen Citadele Group's overall capital position and to refinance the current subordinated debt outstanding to the European Bank for Reconstruction and Development (EBRD). As with Citadele's € 40,000,000 First Unsecured Subordinated Bonds Programme, completed last year, we provided full-scope legal support: from preparing the issuer for the public offering (drafting the prospectus and principal documents, advising on regulatory and jurisdictional matters, managing the issuer's legal relationship with stakeholders, including Latvia’s Financial and Capital Market Commission, Nasdaq Riga and Nasdaq CSD) to its post-listing commitment management.

    Edijs Poga, Eversheds Sutherland Bitāns partner and project leader commented:

    "The success of the first series offering under Citadele's Second Unsecured Subordinated Bonds Programme once again proves Citadele's solid position in the Latvian financial sector. It is always a great pleasure to work with the Citadele team of high-class professionals. The 25 million second programme follows Citadele's highly successful first programme of 40 million subordinated bonds, completed last year."

    Citadele banka is a Latvian bank with a presence across the Baltics and Switzerland, providing transactions and card payments, loans, deposits, investments, asset management and leasing services, as well as a range of exclusive and unique products. Citadele's shareholders are an international and multinational group of investors with experience in the banking sector worldwide. In terms of actual shareholdings, 75% plus one share belongs to a group of international investors represented by the investment company "Ripplewood Advisors LLC," while the remaining shares belong to the EBRD.

    Disclaimer

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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